2020 saw a huge shift in focus from the grips of centralized financial sector to decentralized finance [DeFi]. Among the DEXs, which started dominating on-chain flows, Uniswap in particular, stood out.
Unsiwap Protocol went on to become one of the most prominent platforms witnessing significant traction in a very short period of time. In the latest development, the daily trading volume [7d moving average] across all asset pairs on the decentralized exchange reached an all-time high.
This was revealed by the blockchain intelligence platform, Glassnode which further noted that on an average, $780 million were traded per day in the past week. With this, the figures surpassed the previous peak that hit back in early September 2020.
DeFi went on to become one of the biggest trends last year with Unsiwap leading the DEXs. With just 10 days to this year, the DEX witnessed an astounding growth.
Uniswap Gives Stiff Competetion to Centralized Counterparts
Owing to the prolonged rally of Bitcoin and the crypto market, the net inflow of ERC-20 stablecoins to exchanges have been breaking records almost every single day.
With $2.3 billion, Binance noted most inflows of stablecoins amidst the bull run. But the decentralized exchanges were not far behind either, and have acquired a large portion of the on-chain volume along with the stablecoin inflow in this bull market.
It was none other than Uniswap that was ranked in the second with $708.6 million in the middle of the other centralized exchanges.
Other CEXs such as Huobi, OKEx, Coinbase, and others were observed to be trailing behind Uniswap with stablecoin balanced below $600 million. As COVID-19 fears gripped the world, the industry caught the bug of DeFi with crypto enthusiasts feverishly “FOMOing” on lending protocols, borrowing stablecoins and mining liquidity.
Thanks to this trend, over the past several months, Uniswap has grown to become the world’s largest decentralized exchange by volume. According to Dune Analytics, it even had more than 44% of the DEX market share, at the time of writing.
Hence, it was not just market participants that appeared to be flocking Uniswap. Stanford Blockchain Club became the latest group to verify itself as a Uniswap delegate. With this, the group surpassed a student group at rival California university UC Berkeley to become one of the largest delegates and position itself in the ninth rank.